Convertible-Bond Market Braces for a 2021 That’s Good, Not Great
- Another blowout year requires all drivers to stay in place
- Bankers see trends including zero coupons continuing near term
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A back-to-normal year presents a more modest scenario for convertible bond enthusiasts.
Equity-linked issuance in 2020 topped $100 billion for the first time in over a decade as that corner of the market extended a lifeline to financially distressed firms. Companies were able to fetch prices unseen in decades, and amid the recessionary environment, convertible bond performance topped both the S&P 500 and the technology-heavy Nasdaq 100.